Sleep technology company Eight Sleep has raised $50 million in a strategic funding round led by Tether Investments, valuing the company at $1.5 billion.
The investment follows a $100 million round closed in August 2025 with participation from investors including HSG, Valor Equity Partners, Founders Fund, and Y Combinator.
With the latest funding, Eight Sleep has raised more than $310 million to date, according to company data.
Smart Sleep Hardware And Data Platform
Founded to improve sleep quality through connected hardware, Eight Sleep develops smart mattress accessories designed to monitor sleep patterns and adjust conditions such as temperature throughout the night.
The company’s products integrate sensors and software that track sleep activity while dynamically adjusting the bed environment to improve comfort and recovery. Its systems are currently shipped to customers in more than 34 countries.
Eight Sleep reported becoming free-cash-flow positive in 2025.
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Expanding Into Health Technology
Beyond consumer sleep products, Eight Sleep is exploring broader health applications for its technology. The company has begun seeking approval from the U.S. Food and Drug Administration for systems designed to detect and help manage sleep apnea.
The company is also developing an AI-driven sleep assistant intended to proactively adjust mattress conditions such as temperature, elevation, and firmness to optimize sleep quality.
The system analyzes user data and simulates potential sleep conditions before users go to bed, automatically preparing the sleep environment in advance.
According to the company, early pilot programs using AI-based recommendations have encouraged behavioral changes among users, including adjustments to caffeine intake, exercise timing, and sleep schedules.
Product Development
Eight Sleep has recently expanded its product lineup with new temperature-regulation technologies, including a hydro-powered blanket designed to regulate body temperature and a pillow cover that manages temperature around the head and neck.
These products build on the company’s broader strategy of creating an integrated sleep ecosystem combining hardware, sensors, and software.
Market Competition
The company operates in a growing sleep technology market that includes competitors focusing on mattress temperature control as well as sleep monitoring devices.
Products from companies such as BedJet and Chilipad focus primarily on temperature-controlled bedding systems, while wearable sleep-tracking platforms such as Oura and Whoop compete in sleep data analysis and health monitoring.
About Eight Sleep
Eight Sleep develops connected sleep technology that combines hardware, sensors, and software to monitor and improve sleep conditions. Its smart mattress systems track sleep patterns and adjust temperature and other factors in real time, aiming to enhance sleep quality and support long-term health insights.
